INDIAN car group Tata Motors was yesterday named as the front runner to buy Jaguar and Land Rover from owner Ford.

The two marques will become the first major Western automotive brands to fall into Indian hands if “more detailed” talks between Tata and the US car giant prove successful in the coming weeks.

Both sides hoped to sign a deal in February, although they warned there was still a lot to do. “These are complex discussions and there is still much work that needs to be done before an agreement can be reached,” said a spokesman.

Ford said it was now focused on discussions with Tata, led by chairman Ratan Tata, but it was believed the talks were not exclusive.

Tata was one of three bidders —along with rival Indian motor group Mahindra & Mahindra and investment firm One Equity — named on a shortlist in November.

“No final decision has been made,” Ford said in a statement.

Land Rover and Jaguar employ 15,000 across three UK factories. It is believed Tata is committed to keeping all three.

Buying the two marques would give Tata a major presence outside India and access to new technology. It would also give the company, which is set to launch the world’s cheapest car, a foothold in the luxury end of the market.

“Tata gains an entry into the prestige market, although the snob factor says an Indian Jaguar will be a tough sell,” said Stephen Pope, chief markets strategist at Cantor Fitzgerald.

He said Ford would get around £1billion from the sale. The US company has been pulling out of the European luxury car market after racking up record losses of more than £6.3billion last year.

It sold Aston Martin for £450million last May to a consortium led by former car racing champion David Richardson.

Ford believes Tata will prove to be a long-term owner keen to invest further in the brands, although unions are worried the group will look abroad for more components and manufacturing opportunities.